COLLABORATION
COLLABORATION
Supplier innovation ismanaged on an ad hoc basis Fig. 39. To what extent are you currently benefiting from supplier innovation?
55%of leaders see supplier innovation as an increasing element of growth strategy Fig. 41. To what extent are you currently benefiting from supplier innovation?
a larger part in their growth strategy. Meanwhile, 24% of the followers see very little benefit from supplier innovation, much more than any other group.
“More important” business priorities create barriers to supplier innovation
Leader
Fast follower
Follower
Our approach to supplier innovation is ad hoc
We benefit from supplier innovation very little - a few examples
Data from 2017 shows that all groups struggle with adequate resourcing, but leaders are more likely to have an innovation management process in place. And it is leaders who see organisational complexity as a bigger barrier than others. A general reluctance to recognise and consider supplier innovation is revealed by combining feedback that says “we have more important business priorities”; we have “an innovation strategy that doesn’t include suppliers”; and there is an “internal reluctance to consider external ideas”. More than half of our respondents have offered these views. Joint account plans for critical suppliers are only popular among SRM leaders Given that a joint account or business plan agreed with a strategic supplier is a key output of an SRM programme, SRM leaders are more likely to have one in place: 36% of leaders have achieved this milestone with more than 75% of their strategic suppliers. The joint account or business plan is the part of the governance structure that brings together the value proposition, stakeholder engagement, creativity and drive of the people and the commitment to collaborate in to one place. Those that have one are likely to get more value from SRM than those that do not.
Supplier innovation is established and is a key component of our growth strategy
35%
Supplier innovation is being developed and is an increasing element of our growth strategy
23%
0%
18%
9%
28%
3%
24%
We benefit from supplier innovation very little - a few examples
Not at all - no examples
Supplier innovation is being developed and is an increasing element of our growth strategy
18%
0%
55%
1%
Supplier innovation is established and is a key component of our growth strategy
40%
6%
22%
8%
Don’t know
Our approach to supplier innovation is ad hoc
Don’t know
0%
23%
6%
7%
26%
5%
Not at all - no examples
40%
4%
Lack of time and resources is themost likely barrier to supplier innovation Fig. 42. In 2017, we asked “what are the major barriers to your organisation attracting, evaluating and implementing supplier innovation?”
92%of followers do not have joint account plans for more than half their critical suppliers Fig. 40. For what proportion of your most critical / strategic suppliers have you created joint account plans?
Leader
Fast follower
Follower
Leader
Fast follower
Follower
No formal process to manage external innovation
Our innovation strategy does not include external innovation
23%
4%
Over a third of respondents describe their approach to supplier innovation as ad hoc.
More than three-quarters
15%
2%
36%
23%
5%
16%
2%
Internal reluctance to consider external ideas
None - we have no barriers to supplier innovation
16%
4%
Between half and three-quarters
12%
7%
23%
11%
2%
30%
5%
We have more important priorities
Other
SNAPSHOT ANALYSIS
3%
4%
Less than half
Account plans reveal the difference between sales and procurement. For sales, account planning is a must; for procurement it is a maybe. But SRM leaders know how important account planning is to get value from relationship management with their most critical and strategic suppliers. A joint account plan sends the message that you are serious about growing value from the relationship. It also sets out how that value will be created and measured. Followers get less value from SRM because they don’t share their plans with suppliers.
12%
2%
41%
10%
3%
53%
92%
88
STATE OF FLUX
2018 GLOBAL SRM RESEARCH REPORT
89
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